Pre-tax profits have fallen at the Star newspaper by 9 per cent, with the company's investment in a Sunday edition among the contributing factors. Emmet Oliver has this report.

Accounts lodged with the Companies Office show pre-tax profits at Independent Star Limited dropping from €3.3 million to just over €3 million in the year ended December 26th 2003. The company's turnover was up though from €29 million to €33 million during the same period.

At an operating level the company also did better, pushing profits up from €3.3 million to €4.1 million.

The accounts show the new Sunday edition of the Star cost the company just over €1 million. According to the accounts this sum was used to pay for additional promotional and distribution activities.

The Sunday edition has been slow to grow it sales, but executives at the paper believe in time it will gain a foothold in the highly competitive Sunday market. At present the Sunday World, Ireland on Sunday and the News of the World have a large presence in this market.

Apart from the exceptional costs associated with the Sunday edition, profits were also hit by higher interest charges, which rose to over €3 million during the year under review.

The company is a joint venture between Independent News & Media and Express Newspapers plc, based in London.

The dividends paid to Independent and Mr Desmond's group dropped from €3.2 million to €1.8 million. The company had retained profits for the year of €966,869.

There were 12 directors of the company during the year and they were paid €403,090 in remuneration for management services. This was up on €370,253 in the year before.

The average number of people employed at the newspaper, including executive directors, was 86, up from 75 the year before.